Steve Binnie, at the helm of Sappi for the past 10 months, has had a tough shift. The papermaker’s fortunes abroad, where Sappi derives 75% of its sales, are waning due to falling demand and subdued prices for paper. Added to this is a net debt of US$2bn (R24bn), due in part to the US$1.1bn (R13bn) buyout of M-Real’s graphic papers business in 2008, which is putting its balance sheet and cash flow under pressure, leaving it with little room to invest in higher growth opportunities. Abdul Davids comments.